Message-ID: <14979170.1075860980144.JavaMail.evans@thyme> Date: Thu, 3 Jan 2002 12:34:55 -0800 (PST) From: bruno@firstconf.com To: energynews@fc.ease.lsoft.com Subject: t,h: Eyeforenergy Update Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Bruno Russell X-To: ENERGYNEWS@FC.EASE.LSOFT.COM X-cc: X-bcc: X-Folder: \Michelle_Lokay_Mar2002\Lokay, Michelle\TW-Commercial Group X-Origin: Lokay-M X-FileName: mlokay (Non-Privileged).pst For the first Update of 2002, we bring you a Case Study (first published in erivativesreview.com) of how a hypothetical power distribution company was able to protect itself against weather-related variable earnings by the use of weather risk analysis and hedge transactions. This is a very interesting article which, although based on the concept of weather risk for an energy company, could be equally relevant to a huge number of industries. Scroll down a little for the link to the full story... Also, if you are or are likely to be involved in weather trading or indeed any form of risk management, you might like to check out what will be going on at our upcoming conferences, taking place in Amsterdam in February. More details are available further down in this Update... And finally, of course, all of us at Eyeforenergy wish our readers a very Happy New Year and hope that it will be a prosperous and gratifying one for all of you! Bruno Russell bruno@eyeforenergy.com CONTENTS: - ARTICLE: Weather Hedging At The Hot Air Gas Company (based on a true story of weather hedging) - EVENTS RUNDOWN - RECENT HEADLINES ARTICLE: Weather Hedging At The Hot Air Gas Company (based on a true story of weather hedging) The Hot Air Gas Company rises in a warm winter - based on a true story of weather hedging... The Hot Air Gas Company (HAGC) distributes gas to homes and commercial sites in Canada, just across the border from the US city of Frozen Falls. In these northern latitudes, the normally cold winters generate strong sales for the company. However, the company, because it has weather sensitive revenue, has a natural "weather bet". Through the warm winters of 1997-1998, 1998-1999 and 1999-2000 for example, the company struggled against declining sales and weak revenues, and lost the bet. The winter of 2000-2001 was different: it was so much colder than the long-term average of weather, that the company's revenue was quite good - that is, the company won the bet.... Read the full article here: http://www.eyeforenergy.com/content.asp?news=24222 EVENTS RUNDOWN * EEO Europe: Energy Trading in the New Economy Amsterdam, 19-21 February 2002 Following up for our sell-out conference in Phoenix, December 2001 that was attended by over 250 CEO's, senior executives and press, and Energy Exchanges Online II: Energy Trading in the New Economy USA (September 2001), Eyeforenergy brings you the premier networking and discussion conference for the energy trading community. Meet, do business and discuss the big issues over 2 days with the leaders in energy trading in Amsterdam. To find out more information, including discounts for pre-registration, speaking, sponsoring and exhibiting opportunities, click here: http://www.eyeforenergy.com/eurotrading/ * Emissions Trading 2002 Okura Hotel, Amsterdam, 19-21 February 2002 Emissions trading options are ripe for the picking - so how can you make sure you're ready to profit from GHG? Let's face it - you can't really afford not to be, especially as the World Bank has estimated demand in the international GHG trading system to be in the order of US$20 billion per annum by 2010. Eyeforenergy is delighted to bring you this event which will focus on how you can best seize this exciting new market opportunity. As ever, the conference will be driven by the industry leaders in this arena, backed up by expert advice from those helping the indsutry make the right moves in emissions. Click here for further information: http://www.eyeforenergy.com/emissions/ * Weather Trading 2002 Okura Hotel, Amsterdam, 19-21 February 2002 Today's business is all about risk and how to mitigate it. Weather derivatives has become one of the key tools industries as wide ranging at utilities, airlines, and agriculture have at hand to off-set risks associated with temperature and precipitation. With over 70% of Europe's companies facing weather-related risk, knowing about the latest advances in weather trading is a necessity. Eyeforenergy's latest event will be run in conjunction with our European online trading conference, Energy Trading in the New Economy, and Eyeforenergy's Emissions Trading 2002 event, so you can learn about the latest developments in energy and emissions trading all under one roof. Click here for further information: http://www.eyeforenergy.com/weather/ * The Business of Fuel Cells for Transportation Dearborn Hotel, Detroit, Michigan April 30 - May 1, 2002 As manufacturers are increasingly developing technologies with the energy industry, the auto industry is globalising at an unprecedented rate and both OEMs and suppliers are renegotiating their alternative vehicle programs. This event will examine all possible applications in teh transport industry including synergies with hybrid automobiles and the potentially lucrative APU market. Fueling infrastructure will also be covered and, with BP recently launching Hydrogen fueling stations in Singapore, this issure could not be more timely or pertinent. If you have a story to tell, a product to promote or would simply like to get the full lowdown on the movers and shakers in the industry then, if you're not already in Detroit, you'll certainly want to be there in April 2002. For more information, please visit: http://www.eyeforfuelcells.com/ LATEST HEADLINES PacifiCorp Changes Horses on Priest Rapids Hydroelectric Project http://www.eyeforenergy.com/content.asp?news=24216 Texas Ready for Deregulation; PUC Puts Stamp of Approval on State Plans http://www.eyeforenergy.com/content.asp?news=24194 TXU Taps Into Enron's West Texas Wind http://www.eyeforenergy.com/content.asp?news=24193 Brazil's Aneel Taps Into 23 More Wind Projects http://www.eyeforenergy.com/content.asp?news=24168 ------------------------------------------------------------ This update is provided as part of the free Eyeforenergy Briefing service. In addition to these updates, you will receive a comprehensive newsletter every other week, with fresh in-depth analysis, reports and insights into the issues currently affecting different areas of the energy industry. To subscribe, email: or alternatively send a message to To unsubscribe, email: or alternatively send a message to